Federal Reserve chair nominee Waller supports interest rate cut in December and may shift to a "meeting-by-meeting" decision-making model starting in January next year.

Federal Reserve Board Governor Waller said on Monday that he is advocating for another rate cut at the December policy meeting, but starting in January next year, decision-making may shift to a "meeting by meeting" mode as more key economic data is released. Waller pointed out in an interview, "My main concern right now is the labor market, which is related to the dual mandate of the Federal Reserve. Therefore, I propose a rate cut at the next meeting." He added that as we enter January and more delayed economic data is released, decisions may be made in a more flexible meeting-by-meeting manner. According to interest rate futures, the market currently expects a probability of around 70% for the Federal Reserve to cut rates at the December 9-10 meeting. However, there is still significant disagreement among decision-makers on whether it is necessary to take action again after consecutive rate cuts in September and October. Waller stated that the latest data shows the labor market remains weak, but he also warned that key economic reports delayed due to the government shutdown will be released after the December meeting, making the interest rate decision in January "more difficult". Employment data for October and November will be released on December 16, and inflation data for November will be released on December 18. "If data suddenly show a rebound in inflation or employment, or if the economy accelerates again, it could raise concerns," he said. "But I still don't believe the labor market will see significant improvement in the next six to eight weeks." It is worth noting that Waller is currently being considered by the Trump administration as a candidate to succeed Powell as Chair of the Federal Reserve next year. He revealed that about 10 days ago, he had a "very pleasant meeting" with Treasury Secretary Mnuchin, who is in charge of the interview process. Waller said, "We had a very speculative conversation about the economy, the markets, and the macro situation. They never talk politics, only economics. For me, it was a very good time for exchange."